Sterling Green focuses on finances
DEBT management company Sterling Green Group has admitted that it will have to consider its financing options if trading does not continue at current levels.
The Manchester-based group has reported a loss of £1.65m in the 15 months to the end of March on turnover of £1.3m and says its working capital position is “challenging” having replaced its overdraft facility with a £250,000 loan facility with an 18% interest rate.
The company, which was formerly Stockport-based Hamilton Partners before it acquired Sterling Green in April 2007, said the loss compared with a loss of £73,000 in the 12 months to the end of December 2006. It had no turnover in the earlier period.
“We are emerging from an extremely challenging start to our life as a public company, following the well-documented issues affecting our industry caused by the impact of difficult and uncertain financial markets,” Sterling Green’s chairman Michael Edelson said.
“In recent months the board has overseen a significant reduction in the group’s operating costs and streamlined the senior management team. These actions have reduced the group’s operational costs to a level which we believe can be adequately matched or exceeded by conservative forecast levels of income.”
Sterling Green’s move away from IVAs to focus on mortgage issues as part of debt management plans has been hit by the slowdown in the mortgage market.
However Mr Edelson said that losses have fallen over the last three months and the board believes that the company will begin to operate profitably on a monthly basis in the short term.
